How many hours does a salaried pizza store manager work? At what point, if any, do managers get paid for the extra hours that they work?
Do any of the owners here pay their managers for the extra hours they work?

Depends on how you set it up, back in the day when i accepted a salary position i would base the salary off a 50 hour week. After 70 hours i would stop working, it did not matter what was needed. I never had a boss who was willing to pay extra for all the extra work so it was never an issue.

I no longer believe in salary positions, i pay hourly with bonuses. It is more fair to both sides and neither side gets the shaft.

Hourly all the way. Under salary I always had a bit of tension with the managers. If they worked a little less I was peeved and if they worked an hour more they were peeved. Nothing major, but why be peeved when you don't have to be.

I did a salary job back in the 80's that required 70 hour work weeks. After a year of it I found myself looking else ware. It landed me in the pizza business.

I still use Salary which is based on what an average week is for my GM's - typically 45 to 47 hours is all they ever work. Never have had a salary manager work more than 50 except in my old campus shop which was typically 5-10's so a little extra here and there but they were always compensated well. My current GM in my busy shop works about 47 hours a week and his salary is $950 a week plus bonuses, health insurance, fuel card and 2 weeks paid vacation. This shop does over 40k a week in sales. He has 3 assistant managers below him.

I haven't had a full time manager in years now. I just have part timers (this is not what i want, it is what i can find). As for bonus structure, i currently base it on goals for 3 items. Labor, Food usage and Sales.

From time to time i will change the goals depending on what i think is more important. Everything has been thrown into total chaos here over the last year or so, Min wage goes up $0.90 every year until 2020, and now a Soda Tax that is higher then anywhere else in the country.

I try to keep managers in the 38-40 hour range. I find that our operation is just too physically demanding to work more than that on a regular basis. They do work more at times during busy weeks and when things just happen. The world series this year was a good example where people easily exceeded 50 hours.

The lower entry level mangers make between 14.50 and 18.00 per hour. Some of them have some bonus but it maxes out at around $50 a week. Some of this group are part time.

Assistant GMs make 18.00 to 20.00 per hour plus get a bonus of 1% to 2% of the sales.

GMs make 20 to 22 per hour plus 2 to 4% of the sales. They for the most part make more in bonus than hourly.

Don't try this at home! These are California pay rates with long time people.

They also get all the vacation, sick pay, health care and so on. Its a good deal. Our average GM has been with us for 18.8 years. Average AGM 11.2 years. Average Assistant 5.1 years.

So the bonus is just based on sales?
I'm trying to set up something where some of these criteria factor in: labor cost, food cost, out the door time, avg. ticket amount, inspection scores etc. Too complicated?

So the bonus is just based on sales?
I'm trying to set up something where some of these criteria factor in: labor cost, food cost, out the door time, avg. ticket amount, inspection scores etc. Too complicated?

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A little of both. Here is a sample of one of our managers set up.

$18 an hour = $720 a week
+
5% of sales over 10K per week. They do about 25K so 15,000 * .05 = $750
+
$50 for being under labor
$50 for being under food
$50 for being under on delivery times
$50 for cleaning/uniform / car signs and the like

So $720 + $750 + 200 = $1670 per week.

We are in a high labor cost area of California so this may seem high, but its what we have.

Started with Salary for GM 20 years ago. Dropped it after two years. Never looked back. Hourly with OT + Bonus. Fair to everyone and as the Pirate pointed out above, nobody gets peeved. I only ever had one GM that was really padding hours and that was not hard to spot. Our bonus was calculated on certain goals and on sales and paid as a per-hour calculation. The bonus calc was not applied to OT hours as the 50% bump in the rate is enough.

Quality, Price and Service: Pick any two.

I owned two pizza stores for 10 years and one for 19. That chapter is closed but I am happy to help if anyone has questions. The best way to find me is through my business brokerage and valuation contact info: http://www.Rockiesbroker.com

Started with Salary for GM 20 years ago. Dropped it after two years. Never looked back. Hourly with OT + Bonus. Fair to everyone and as the Pirate pointed out above, nobody gets peeved. I only ever had one GM that was really padding hours and that was not hard to spot. Our bonus was calculated on certain goals and on sales and paid as a per-hour calculation. The bonus calc was not applied to OT hours as the 50% bump in the rate is enough.

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Can you do a breakdown much like PizzaPirate did. I would like to understand how you pay your GM.